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Investor Plan guide PensionsGrowth fundsNameMethodNo of fundmanagersNo offundsAnnualManagementCharge*RiskratingInvests inAims toAchieve a moderate levelof long-term growth withsignificantly less variability inreturns than from investingonly in equitiesBalancedActive340.446%M1M1Global equitiesBondsPropertyEmerging marketsCommoditiesProperty ed property fundsCommercial propertyProvide long term growthsimilar to investing directly incommercial propertyUK EquityPassivePassive110.095%M2M2UK equitiesTrack the performance of theFTSE All Share Index at lowcostGlobal Equity-PassivePassive130.102%M2M2Global equitiesMatch the performance of themarketsUK EquityActiveActive110.795%M2M2UK equities, primarilyOutperform the al equitiesEmerging market eqsProperty and infrastructureAchieve long-term growth thatis similar to equities but withless variability in returnsGlobal Equity- ActiveActive330.628%HGlobal equitiesOutperform the markets* In addition to the fixed Annual Management Charge there are othervariable fund charges. For details of these other charges please go towww.siemens.co.uk/mypension, visit Fideltiy, then click on the fundfactsheets. The Annual Management Charge plus the other chargesgives the fund’s Total Expense Ratio.KeyRisk ratingLow risk/returnL1Higher risk/returnL2M1M2Hplease refer to Fidelity’s fund factsheets for further details12

Pension Investor Plan guidePreservation fundsNameMethodCashActiveInflation LinkedAnnuity TargetActiveAnnuity TargetActiveConsolidationActive70%Passive30%No of fundmanagersNo iskrating0.135%50.332%Invests inAims toL1Cash-like securitiesprovided by Governmentand financial institutionsMatch returns from bankdeposit accountsL2Index-linked GiltsCorporate BondsGrow in line with inflationand mirror any price changesin index-linked annuitiesM1Corporate BondsGiltsGrow in line with marketinterest rates and mirror anyprice changes in fixed rateannuitiesFixed interest, primarilyAchieve stable growth aboveinflation over the mediumterm with low levels of returnvariabilityM1Ethical & Shariah fundNameEthicalShariahMethodActivePassiveNo of fundmanagers11No .045%M2Invests inAims toUK equitiesExclude companies which failto meet the ethical criteriawhilst including companieswhose business activities areregarded as making a positivecontribution to societyGlobal equitiesInvest consistently with specificaspects of Islamic law bymirroring the performance ofthe Dow Jones Islamic TitansfundPlease note - these funds may result in lower performance or higher volatility than equivalent funds without any investment restrictions.* In addition to the fixed Annual Management Charge there are othervariable fund charges. For details of these other charges please go towww.siemens.co.uk/my pension, visit Fideltiy, then click on the fundfactsheets. The Annual Management Charge plus the other chargesgives the fund’s Total Expense Ratio.KeyRisk ratingLow risk/returnL1Higher risk/returnL2M1M2Hplease refer to Fidelity’s fund factsheets for further detailsGo to www.siemens.co.uk/mypension, visit Fidelity, then clickon the fund factsheets for more information on each fund.13

Investor Plan guide PensionsInvestment Decision TreeThe decision tree is designed to help you with your fund choice. For an interactive version, go towww.siemens.co.uk/mypension and select ‘Fund choices’.SiemensBenefitsSiemens BenefitsSchemeSchemeInvestmentdecision treetreeInvestmentdecisionThis tool is here to assist you in choosing your funds, however you should be aware that you are able to selectany of the funds listed below.START HEREWould you like toconsider moving out ofthe default fund?Remain invested in theFlexible Access LifestyleTraditional Annuity LifestyleThese funds graduallymove your pensionsavings into less volatilefunds, geared towardsyour chosen retirementoption.Would you like tochoose one of the 3Trustee proposedlifestyle strategies?Flexible Access LifestyleCash Out aland/orviewsreligiouson howviews onhowyou invest?youinvest?There are 4 investmentfunds designed toprotect the purchasingpower of your accountcloser to retirement orfor very cautiousinvestors:Would you like toprotect some or all ofyour savings?EthicalHShariahM2CashL1Inflation-Linked Annuity TargetL2Annuity TargetM1ConsolidationM1BalancedM1UK Equity - PassiveM2OpportunityM2Property and InfrastructureM1Global Equity - PassiveM2Global Equity - ActiveHUK Equity - ActiveM2Risk ratingLow risk/returnL1Higher risk/returnL2M1M2Hplease refer to Fidelity’s fund fact sheet for further details14Lifestyle fundsFreestyle funds

Pension Investor Plan guideHow to make changes to your investment choicesTo make a change visit www.siemens.co.uk/mypension, log in and select the change investment screen.Or complete an ‘Investment choice’ form available from the Plan Library.Need to KnowsYou can switch between Lifestyle & FreestyleIn Freestyle, you can move your existing account and/or change your ongoingcontributions between the different investment fundsIn Lifestyle you can change your target retirement age; if you do, this maychange how your existing account and/or contributions are invested – see belowWhat happens nextPension Services will make changes once they receive your instructionsChanges are normally actioned within 7 working daysHowever, there is a period of about 9 working days at the beginning of themonth where no changes can be madeChange your target retirement ageYour target retirement age is automatically set to 65. If you want to choose another age you can do this by visitingwww.siemens.co.uk/mypension, logging in and then selecting the change investment screen.Need to knows:Pension Services will make changes once they receive your instructionsChanges are normally actioned within 7 working daysHowever, there is a period of about 9 working days at the beginning of themonth where no changes can be made15

Investor Plan guide PensionsRetirement optionsAn introduction to your retirement optionsThe normal retirement age for the Plan is 65, but you may take benefits earlier or later than this with Company and Trusteeapproval.The value of your account at retirement will depend on the contributions paid, the performance of theinvestments, any charges payable, the age at which you choose to retire and any cost of converting the benefit into anannuity.You can decide how you take your pension account within the options offered by the Plan.2 reasons why retiring today is different to retiring in the past:You may choose to vary your income each yearThe fund is likely to have to last longerPension Freedoms have given people far more choice with their retirement options.There are 3 main options:FLEXIBLE ACCESSTRADITIONAL ANNUITYCASH OUTSee the videos at www.siemens.co.uk/mypension to find out morePre-retirement - Need to knows: You don’t have to take benefits at your targetretirement age You don’t have to stop work to take benefits You can use one option or a combination of options You can normally take up to 25% of the fund as a taxfree cash lump sum After taking any tax free cash, the rest of the fund willbe treated as your income and will be taxed at yourmarginal rate Estimate how long your fund will need to last needto-last/ You have the option of transferring your pension to anew provider, but beware of pension scams ms.aspxAre you in a Lifestyle fund?YesTime before targetretirement ageNoFunds automatically start moving to lessvolatile investments25 yearsReview your investment choice at leastannuallyReview which retirement option you mighttake – are you in the right lifestyle fund?10 yearsThink about moving some of your funds to lessvolatile investments (see page 13)1 yearConsider seeking advice from Pension Wise ora financial adviser (see the last page)Consider seeking advice from Pension Wise ora financial adviser (see the last page)You will receive a Retirement Options pack8 monthsYou will receive a Retirement Options packYou need to return your form to indicate yourchosen option1 monthYou need to return your form to indicate yourchosen option16

Pension Investor Plan guideThe main retirement options comparedThis a high level overview of the Flexible options, for further information please contact AskHR.Flexible AccessTraditional AnnuityCash OutHow does itwork?Your pension fund is invested andyou draw an income directly fromthe fund as and when you need it.You exchange your savings for asecure income from an annuityprovider.Your pension fund is paid to you,as a lump sum or series of lumpsums.MainAdvantagesFlexibility.Certainty. Guaranteed incomefor life. No maintenancerequired.You can use how you wish.MainDisadvantagesOngoing maintenance is required.Investment risk. Ongoing fees.Inflexible.You will pay tax on 75% of yourfund. You may not have enoughsavings to last the whole of yourlife.Any remaining savings still inthe Plan will be paid to yourbeneficiary(s) as a lump sum.There will be a tax charge in somecircumstances.Your annuity will cease tobe paid when you die unlessyou purchase an annuity thatspecifically provides for deathbenefits e.g. one that providesa dependant’s pension on deathor pays a lump sum if you diewithin a certain number of yearsof retirement.Any remaining savings still inthe Plan will be paid to yourbeneficiary(s) as a lump sum.There will be a tax charge insome circumstances.Death BenefitsYou can remain within the SiemensPlan and take up to 5 incomepayments (1 per year); alternatively,you can transfer to another providerof your choice.You should research annuityproviders to ensure you aregetting the best rates.Need to knowsOnce you’ve accessed your savingsyour contribution limit is reducedto 10,000 pa and Government hasstated that the limit is likely to bereduced to just 4,000 pa.If you have any medicalconditions this may helpincrease your income.Calculate how much tax youwould pay if you are consideringthis option.Once you’ve accessed yoursavings your contribution limitis reduced to 10,000 pa andGovernment has stated that thelimit is likely to be reduced tojust 4,000 pa.Please note - If you take your pension savings in more than one way e.g. some as Flexible Access and the rest asTraditional Annuity, then you should be aware of the death benefits that will apply to each option.Watch the retirement options videosat www.siemens.co.uk/mypensionunder ‘Pension Freedoms’17

Investor Plan guide PensionsMore detail on death benefitsPlease note that if you take your pensions savings using a combination of options, thenyou should be aware of the death benefits that will apply to each option. If you areconsidering using a combination of options, please contact AskHR for more details.Should you die after starting to draw benefits from the Investor Plan there may be a taxcharge. Examples will include; if you are over 75 when you die or you have pensionsavings exceeding the Lifetime Allowance.Inheritance tax does not usually apply as death benefits paid from the Plan are held ondiscretionary trust. This does mean that you can't guarantee to whom your remainingsavings will be paid, however, the Trustees will have regard to your expression of wishform and therefore you should make sure this is up to date.Retiring earlier or later than age 65?(consent from the Company may be required)"You can access yoursavings from 55""I'd like to retire early""I'd like to retire later""You can leave yourfund invested""I'm in ill health"18"If you can't do your job theCompany may make an extracontribution on your behalfand you may be able to accessyour savings before age 55"

Pension Investor Plan guideDeath benefitsWhat death benefits do I have before I access my savings?Please follow the appropriate path:I am an active memberof the Investor Plan*The higher of The value of youraccount (excludingany AVCs, EDCs ortransfers in) Plus the value of anyAVCs, EDCs ortransfers in your fund valueYour fund will be held on discretionary trust and so will not usually incur a taxcharge. Whilst you can't guarantee to whom the death benefits will be paid,the Trustees will have regard to your Expression of Wish form and therefore werecommend that this is kept up to date.Nominate your beneficiaries today!The Trustees have the discrection as to how your death benefits are dividedbetween your relatives, dependants, legal personal representatives or nominatedbeneficiaries. Make sure that your Expression of Wish form clearly nominates yourbeneficiaries.Download an Expression of Wish form from the library at www.siemens.co.uk/mypension.Download an 'Expression of Wish' form from the library atwww.siemens.co.uk/mypensionThe Trustees may decide to use part or all of the death benefits to provide a pension for a dependant.*If you are made redundant, remain unemployed and die within 12 months of being made redundant, you will still be covered for theabove detailed death benefits, provided that you keep your benefits within the Plan.** Death Benefit Salary is your basic fixed annual pay (excluding overtime) at date of death or leaving pensionable service, if earlier, andthe bonus and commission payments received in the 12 months before date of death, or leaving. Alternatively, it could be the samecalculation in any previous period of 12 consecutive months in the last 10 years, if that produces a higher amount. For members of'MyChoice' it also includes an amount equal to the reduction in your pay as a result of the salary conversion process.19

Investor Plan guide PensionsLeaving SiemensWhat happens if I leave Siemens before I retire?If you stop being an active member, provided you have at least 30 days' Pensionable Serviceyou can either:1 - leave the fund invested until you are ready to take benefits (See page 17 for details of theretirement options available to you); or2 - transfer your fund to another registered pension arrangement at any time. Visitwww.siemens.co.uk/mypension, log in to your online pension account and then select theTransfer Out quote option.* Further information in relation to transferring benefits out of the Plan, or your options fordeferred benefits, are available from AskHR.I’m not leaving Siemens, but I’d like to leave the Plan.You can opt-out of the Plan at any time but don’t forget you will be giving up valuablebenefits, so you might want to take independent financial advice. You may choose to re-jointhe Plan at any time. Government legislation requires us to ‘re-enrol’ you every 3 years; youcan of course opt out againI’m on paid family leave, what happens to the Plan?You pay contributions based on your actual pay. The Company will pay the balance betweenyour actual contributions and those you would have made before the period of absence(including matched contributions up to 10%). This is to ensure that the total amount creditedto your account will remain what it would have been if you had not been absent.I’m on unpaid leave, what happens to the Plan?No contributions will be paid, but if the Company allows you to make up your contributionson your return to work, the Company will pay matched contributions.Ill-health retirementIf you have to retire because of ill-health, you may be entitled to receive your retirementbenefits early.If your illness prevents you from undertaking any form of work in the future: theCompany will credit your account with between 4% and 6% of the pensionable salary youearned in the previous 12 months for each year between your ill-health retirement and age65.The exact percentage will depend on the contributions you made in your last 12 months ofpensionable service. If you had contributed 4%, the Company credit would be 4%, if 5% itwould be 7.5%, if you contributed 6% or more, it would be 9%.If your illness means you could not carry on doing your current job, but might be ableto do another job: the Company will credit your account with 4% of the pensionable salaryyou earned in the previous 12 months, for each year between your ill-health retirement andage 65.You then use your account to take your choice of retirement benefits in the same way as fornormal retirement at age 65.Serious ill-health: if your life expectancy is seriously reduced, the whole of your account(including Company credits) may be paid as a cash sum. Please note, this would not be taxedin the same way as the cash lump sum option at retirement and, if paid before you reach age75, will be tax free providing the amount is below the Lifetime Allowance. If it is paid afterage 75, a 45% tax charge will apply.20

Pension Investor Plan guideFrequently Asked QuestionsWhat does the Plan cost?All administration costs are currently met by Siemens butyou will meet the costs of the investment option youchoose. Each option has an Annual Management Chargeand this is stated in the Investment section of this guide.Please note charges can change at any time, for the latestinformation please go to www.siemens.co.uk/mypension,visit Fidelity, then click on the fund factsheets.Is there a cost to switch investment choices?The Company currently meets all administration charges.However, the Trustees reserve the right to introducecharges for members who make frequent changes.In unusual circumstances (such as when many people wantto move out of a particular fund), switching funds mayincur indirect costs. This is because investment managerscan reflect the costs of buying and selling assets in thefund’s pricing.I’m getting divorcedPension rights are normally taken into account as part of acouple’s assets. There are a number of options available tothe court in dealing with pension rights. We will complywith any instructions from the court. If you need moredivorce related pension information, please contact PensionServices.What if there is a major stock market event before myinvestment fund switch is processed?The Trustees and the Company cannot be held liable for theadverse impact of market movements that take place at anytime.What is the Trustees’ role?The Trustees’ role is to run the whole of the SiemensBenefits Scheme, making decisions on behalf of members,ensuring that the Plan is operated in accordance with therules and within the law.The Trustees are also responsible for monitoring theinvestment funds available in the Investor Plan and makingchanges to these where appropriate. However, as amember of this Plan, it’s up to you to choose how muchyou contribute and how you invest your contributionswithin the range of options available to you.I have a complaintIf your complaint cannot be resolved by Pension Services,there is a two-stage formal process for

You can also make regular or lump sum contributions at any time up to your full monthly earnings (less National Insurance and any other deductions). These are known as Additional Voluntary Contributions (AVCs). You can make or change Additional Voluntary Contributions through 'MyChoice'.